• Text size      
  • Send this article to a friend
  • Print this article

Car insurance premiums plunge

CAR insurance premiums plunged by a record rate of 14.1% over the past year amid a "more fiercely competitive market" and expectations that more bogus whiplash claims will be weeded out.

The typical quote for annual comprehensive car insurance cover was £533 in January, which was also a record 4.6% slide on the previous quarter, according to the latest AA Insurance premium index, which takes the average of the five cheapest quotes on the market.

But despite this better news for motorists, Simon Douglas, director of AA Insurance, warned premiums may have been falling too fast, ahead of much-anticipated changes within the industry. He said "helter-skelter" prices could end up bouncing back up sharply later this year.

The AA British Insurance Premium Index, which has been running for 20 years, found north-west England remained the most costly region to insure a car, although it saw the biggest price drop over the past quarter at 6.3%.

Scotland was also still the cheapest place in Britain to insure a car, with the premium for someone who shops around falling to £389 after a 4.9% drop on the previous quarter.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.